One-glance verdict
Within fair range
$101.81 our estimate vs market $104.94
Wall Street consensus: $112.72 (10.7% higher than our fair-value estimate)
3% above our estimate
Fundamentals snapshot
The Estée Lauder Companies Inc.
EL · NYQ · Consumer Defensive · Household & Personal Products
Current price
$104.94
52-week range
$66.22 - $121.64
Market cap
$38.02B
Balance sheet
Stretched
5.02x Adequate
Net debt $6.00B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 1.6% last year.
- Reward Returns 9.3% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
The Estée Lauder Companies Inc.
Estée Lauder sells a wide range of beauty products like skincare, makeup, and perfumes under well-known brands. Their money primarily comes from selling these luxury and everyday beauty items through department stores and online, and it matters because their sales show how well people are buying these types of goods.
How the company got here
The Estée Lauder Companies was founded in 1946 by Estée and Joseph Lauder, starting with just four skincare products made in New York City. They secured their first major department store order from Saks Fifth Avenue in 1948, marking a significant early step in their growth. Over the decades, the company expanded its product lines and international reach, opening an office in Hong Kong in 1961 and its first international account in London's Harrods in 1960. A key turning point was going public in 1995, which allowed for further expansion and acquisitions, building a broad portfolio of prestige beauty brands.
What it actually does
The Estée Lauder Companies manufactures and sells a wide range of beauty products, focusing on prestige (or high-end) skincare, makeup, fragrance, and hair care. They operate in approximately 150 countries and territories, selling through various channels like department stores, specialty beauty retailers, travel retail, and their own e-commerce sites. The company's strategy is centered on building strong brand equity, continuous product innovation, selective distribution to maintain exclusivity, and premium pricing, rather than competing on price in the mass market.
Skin Care
This is Estée Lauder's largest and most important business segment, accounting for about half of the company's total sales. It includes a wide variety of products designed to improve skin health and appearance, such as moisturizers, serums, cleansers, and anti-aging treatments. Key brands in this category include the flagship Estée Lauder brand, Clinique, and the ultra-luxury La Mer, as well as science-led brands like The Ordinary. This segment is crucial because skincare products often encourage repeat purchases and support premium pricing strategies.
Makeup
The makeup segment is the second-largest contributor to Estée Lauder's revenue, making up around 28-29% of total sales. This category offers a diverse array of cosmetic products, including foundations, lipsticks, mascaras, and eyeshadows, designed to enhance beauty and self-expression. Popular brands within this segment include M·A·C, Bobbi Brown Cosmetics, and Too Faced, which cater to various consumer preferences within the prestige market.
Fragrance
Fragrance is a significant and often fast-growing part of Estée Lauder's business, representing about 17-19% of total sales. This segment includes a variety of scents for men and women, such as perfumes, eau de parfum, and body sprays, as well as scented lotions and candles. It is anchored by highly sought-after luxury and artisanal brands like Jo Malone London, Tom Ford Beauty, Le Labo, and Kilian Paris, which are known for their unique and premium offerings.
Hair Care
The hair care segment is the smallest of Estée Lauder's main product categories, contributing about 3-4% of the company's overall revenue. This division offers products aimed at enhancing hair health and styling, including shampoos, conditioners, and styling treatments. While not as large as skincare or makeup, it complements the company's broader beauty portfolio.
What management is betting on now
Estée Lauder's current strategy, called 'Beauty Reimagined,' focuses on restoring sustainable sales growth and improving profitability. Key priorities include accelerating consumer reach by expanding into preferred channels and markets, driving innovation in popular product categories, and increasing investments in consumer-facing initiatives like advertising and marketing. The company is also working to streamline operations, making them leaner and more agile, and is leveraging technology, including artificial intelligence (AI) through a partnership with Microsoft, to enhance decision-making, personalize consumer experiences, and improve overall productivity.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$925.00M
FY2025 Q3
$162.00M
FY2025 Q4
$394.00M
FY2026 Q1
$-436.00M
FY2026 Q2
$1.02B
FY2026 Q3
$310.00M
FY2026 Q4
$425.00M
FY2027 Q1
$-235.00M
Revenue
$3.71B
Net income
$233.00M
Diluted EPS
0.64
Operating cash flow
$-166.00M
Free cash flow
$-235.00M
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Sources
Revenue
$3.63B
Net income
—
Diluted EPS
-0.31
Operating cash flow
$576.00M
Free cash flow
$425.00M
Fetching…
Sources
Revenue
$3.71B
Net income
$89.00M
Diluted EPS
0.24
Operating cash flow
$412.00M
Free cash flow
$310.00M
Fetching…
Sources
Revenue
$4.23B
Net income
$162.00M
Diluted EPS
0.44
Operating cash flow
$1.12B
Free cash flow
$1.02B
Fetching…
Sources
Revenue
$3.48B
Net income
$47.00M
Diluted EPS
0.13
Operating cash flow
$-340.00M
Free cash flow
$-436.00M
Fetching…
Sources
Revenue
$3.41B
Net income
—
Diluted EPS
-1.52
Operating cash flow
$601.00M
Free cash flow
$394.00M
Fetching…
Sources
Revenue
$3.55B
Net income
$159.00M
Diluted EPS
0.44
Operating cash flow
$284.00M
Free cash flow
$162.00M
Fetching…
Sources
Revenue
$4.00B
Net income
$-590.00M
Diluted EPS
-1.64
Operating cash flow
$1.06B
Free cash flow
$925.00M
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Sources
Is it cheap or expensive?
Fair value $101.81 vs current price $104.94
Wall Street consensus is the average analyst price target: $112.72 (10.7% higher than our fair-value estimate).
Our most-likely fair value is $101.81 a share — about 3.0% away from today's price of $104.94, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $6.0B. Interest coverage 5.0x.
Net debt
$6.00B
Interest coverage
5.02x
The Estée Lauder Companies Inc.'s profit covers its interest bill about 5.0 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
EL
BASELINE
The Estée Lauder Companies Inc.
Total debt $9.20B Interest coverage 5.02x This is the baseline the peer rows are being compared against.
Total debt $38.93B Interest coverage 22.52x +348% vs EL Carries about 4.5x more debt cushion than EL.
Total debt $3.30B Interest coverage 1.53x -69% vs EL Carries about 3.3x less debt cushion than EL.
Total debt $8.34B Interest coverage 6.31x +26% vs EL Carries about 1.3x more debt cushion than EL.
Total debt $7.72B Interest coverage 15.85x +216% vs EL Carries about 3.2x more debt cushion than EL.
Total debt $929.30M Interest coverage 3.22x -36% vs EL Carries about 1.6x less debt cushion than EL.
What you should know
The case for and against EL
3 Rewards
0 Risks
Rewards
-
Revenue grew 1.6% last year.
-
Returns 9.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
104.94x
Forward P/E
26.11x
P/B
9.44x
P/S
2.49x
EV/EBITDA
16.67x
PEG ratio
2.12x
Profitability
How much profit each dollar creates
Gross margin
76.0%
Operating margin
11.9%
Net margin
2.4%
ROE
9.3%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
2.28x
Current ratio
1.25x
Quick ratio
0.82x
Total debt
$9.20B
Total cash
$3.20B
Growth
How the business has been compounding
Revenue TTM
$15.28B
Revenue 5Y CAGR
-4.0%
EPS TTM
1.00
EPS 5Y CAGR
-43.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.95B
Free CF TTM
$1.32B
FCF margin
8.6%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
140.0%
Last ex-div date
2026-08-31